In the fast-paced and ever-changing business landscape, strategic planning has become the cornerstone of success for organizations of all sizes. Recently, TalentRise hosted a webinar where he delved into strategic planning, discussing insights, strategies, and how organizations can overcome challenges and maximize success.

What is strategic planning?

Ninety-five percent of strategic plans fail. Why? Because the organizations launching them lack direction and communication across teams, set unrealistic goals, and do not utilize the proper resources to achieve these goals.

Additionally, government policies, inflation, softening consumer demands, and polarizing diversity equity, inclusion, and belonging (DEI&B) efforts are all trends within the workplace that impact both employee roles and the internal operations of an organization. When businesses are “fractured” on the macro environment level, it threatens their ability to set and achieve organizational goals.

Related: Advancing DEI&B Initiatives: Achievements, Challenges, and Next Steps

Why is strategic planning essential to an organization’s operational success?

Strategic planning is a critical management process that helps businesses remain competitive and adaptable in a rapidly changing business environment. It provides a roadmap for achieving long-term success and growth while addressing challenges and taking advantage of opportunities. The “roadmap” consists of a multi-step process that, once implemented, will help your organization redefine and reach its long-term goals.

Implementing strategic planning

Implementing strategic planning involves several key steps and considerations. Here are the required steps to assist you in implementing strategic planning effectively:

Step 1: Assess the current state of your organization

As previously mentioned, it is vital to investigate both the current state of your company and the macro-level trends that also impact the daily operations of your business. Bringing in “outside” dynamics is necessary to look critically within the business. Determining how the outside world affects your business’ clients, product development and sales, and issues will help define your strategic objectives and associated risks with deploying such a program.

Step 2: Establish your goals

Create a vision statement that outlines your company’s desired future state. Many of these “goals” will be informed by your organization’s current state, especially the areas of weakness. Identifying areas where a competitive advantage is present is another approach to establishing a long-term goal for your strategic plan. Capitalizing on these unique strengths and attributes that set your business apart from competitors can leverage your competitive edge in the industry.

Likewise, some useful strategic planning tools that assist in mapping your organization’s objectives are the strengths, weaknesses, opportunities, and threats (SWOT) and political, economic, social, technological, environmental, and legal (PESTEL) analyses. These tools allow your organization to develop a more holistic and informed strategic plan. SWOT focuses on internal factors, helping leverage your strengths and address weaknesses. PESTEL considers the external factors, enabling your company to anticipate and adapt to changes in the broader environment. Together, these analyses provide a well-rounded view of your company’s strategic position and the external context in which it operates, facilitating better decision-making and more effective strategic planning.

Step 3: Fill in the gaps

“Filling the gaps” is a multi-step process within the step itself. Typically, strategic plans are formatted for three years but can vary depending on multiple factors, most commonly the organization’s type of business. A longer timeline allows each identified “gap” to be addressed and the allocated resources required to “bridge” it.

Other necessities to effectively “fill the gaps” in your organization’s plan include the following:

  1. “Feedback loop”: Otherwise known as a feedback mechanism, this is an emergent strategy that allows potential disruptions of the plan’s operations. A successful strategic plan is prepared for real-time changes and adapts with agility.
  2. Clear communication: Effectively communicating across your team ensures swift adjustments when changes must be made. Communication helps guarantee a concerted effort in your organization because everyone understands the company’s goals and the industry subject matter.
  3. Prompt execution: After fully formulating the strategic plan, it’s essential to initiate its execution promptly. The closer the plan’s launch aligns with its development, the more tangible and effective the outcomes tend to be.
  4. Talent alignment: Talent alignment is a strategic initiative that aligns your workforce’s skills, competencies, and resources with the company’s long-term vision. The primary purpose of a talent alignment plan is to ensure that your organization has the right people in the right positions with the right skills to support your strategic direction.

Step 4: Establish measurements of success

Measuring the success at multiple points along the strategic plan is essential to ensuring a positive outcome. It clearly shows how well your organization is advancing toward its strategic goals and whether adjustments are needed. It informs you whether a reallocation of resources is required and identifies potential risks and areas where the “plan” falls short of its objective. Measurement forms include profit and loss statements, key performance indicators (KPI), and MEKKO and Bowling charts.

Step 5: Consider using a facilitator

Whether internal or external, utilizing a facilitator to guide and support the strategic planning process can significantly enhance the quality and effectiveness of the resulting strategies. Facilitators are typically external to your organization, which makes them impartial and objective. Additionally, they structure the planning process by defining clear objectives, establishing a timeline, and ensuring that the agenda is followed.

2024 talent strategy planning

It’s that time of year when executive leadership teams are gearing up for an off-site strategic planning meeting to prepare for the upcoming year. With a global economy in constant flux, continued discussions about a potential recession, and shifting guidelines for hybrid work models, the importance of strategic business and talent planning has never been more critical.

Related: Embracing Change: The Tug-of-War Between Remote and Onsite

Watch the webinar here.